Oil prices edge lower on prospect of rising US interest rates

Oil prices inched lower on Wednesday on concerns of another US Federal Reserve interest rate hike next week after consumer prices unexpectedly rose in August, outweighing support from a robust OPEC oil demand growth forecast.

Brent crude futures fell 38 cents, or 0.4 per cent, to $92.79 a barrel. US West Texas Intermediate crude was at $87.02 a barrel, down 29 cents, or 0.3 per cent.

Pressuring prices was a hotter-than-expected US inflation report on Tuesday that dashed hopes that the Fed could scale back its rate policy tightening in the coming months. Fed officials are set to meet next Tuesday and Wednesday, with inflation remaining way above the US central bank’s 2 per cent target.